SIP TAX CALCULATORSection 80C & LTCG Planning
Calculate your SIP tax benefits under Section 80C, ELSS investments, and long-term capital gains tax planning for India.
SIP Tax Planning Calculator
Tax Benefits & Analysis
Enter your investment details to see tax benefits analysis
India SIP Tax Rules 2025
Section 80C Benefits
- ELSS SIP investments qualify for Section 80C deduction
- Maximum deduction limit: ₹1.5 lakh per financial year
- 3-year lock-in period for ELSS investments
Capital Gains Tax
- LTCG above ₹1 lakh taxed at 10% (without indexation)
- STCG taxed at 15% for equity funds
- Debt funds: LTCG taxed as per income tax slab
Disclaimer: This calculator provides estimates based on current tax laws. Tax rules may change. Please consult a tax advisor for personalized advice. Past performance does not guarantee future results.
SIP Tax Calculator India - FAQ
Common questions about SIP tax benefits and calculations in India
Q What is Section 80C and how does it benefit SIP investors in India?
Section 80C allows Indian taxpayers to claim deductions up to ₹1.5 lakh per financial year on eligible investments including ELSS mutual funds. When you invest in ELSS through SIP, your entire annual investment (up to ₹1.5L) is deductible from your taxable income, effectively reducing your tax liability.
Q How is Long Term Capital Gains (LTCG) tax calculated on SIP investments?
For equity mutual funds (including ELSS), LTCG tax is 10% on gains exceeding ₹1 lakh per financial year, without indexation benefit. The ₹1 lakh exemption applies annually, so if you redeem after 5 years, you get ₹5 lakh total exemption. For debt funds, LTCG is taxed as per your income tax slab rate.
Q What's the difference between ELSS and regular equity fund taxation?
ELSS funds offer Section 80C tax deduction benefit (up to ₹1.5L annually) but have a 3-year lock-in period. Regular equity funds don't offer 80C benefits but have no lock-in. Both are taxed identically for capital gains: STCG at 15% and LTCG at 10% on gains above ₹1 lakh annually.
Q Can I claim Section 80C benefits for multiple ELSS SIPs?
Yes, you can invest in multiple ELSS funds through different SIPs and claim the combined Section 80C deduction. However, the total deduction across all 80C investments (ELSS, PPF, EPF, etc.) cannot exceed ₹1.5 lakh per financial year. It's often beneficial to diversify across 2-3 good ELSS funds.
Q How does the new tax regime affect SIP investments in India?
Under the new tax regime, you cannot claim Section 80C deductions, so ELSS loses its tax-saving advantage. However, regular SIP investments in equity funds remain attractive as LTCG tax rates are the same in both regimes. Choose the old regime if your total deductions exceed the tax benefit of new regime's lower rates.
Q What documents do I need for claiming SIP tax benefits?
For Section 80C claims: Annual investment certificate from the AMC, which shows your total ELSS investments. For capital gains: Detailed capital gains statement from the AMC showing purchase date, sale date, purchase price, and sale price. Most mutual fund platforms provide these statements automatically.
Q Why does the calculator show negative tax benefits for debt funds?
Debt mutual funds are tax-inefficient compared to equity funds. They don't qualify for Section 80C deductions, and LTCG is taxed as per your income tax slab (up to 30%) without any exemption limit. This often results in higher tax liability than tax savings, hence the negative figure represents additional tax you'll pay.
Q Is this calculator accurate for all Indian taxpayers?
This calculator provides estimates based on current Indian tax laws (as of 2025) and standard assumptions. Individual circumstances may vary based on total income, other investments, and applicable surcharges/cess. For NRIs or taxpayers with complex situations, consult a qualified Chartered Accountant for personalized advice.